Cleaning & Restoration Breaking News

Home Builders Confident About Market Conditions

June 17, 2002
/ Print / Reprints /
/ Text Size+
WASHINGTON, June 17 /PRNewswire/ -- Indicating that builders continue to view the market for new single-family homes as stable and healthy, the National Association of Home Builders' Housing Market Index (HMI) for June remained unchanged from a revised 60 reading in the previous month. The HMI has held within three points of this strong reading since the beginning of the year.

"The favorable interest rate environment, in which rates on long-term mortgages recently have been hovering around 6.7 percent, is encouraging many prospective home-buyers to take the plunge, and ongoing increases in house values have also been fueling housing demand," said NAHB President Gary Garczynski, a builder/developer from Woodbridge, Va. "Home builders certainly have good reasons to be confident. The main concern among builders hasn't changed, however. In many markets, shortages of affordably priced lots for development are significant barriers to housing affordability and first-time homeownership."

The HMI is derived from a monthly survey off builders that NAHB has been conducting for nearly 20 years. Homebuilders are asked to rate current sales of single-family homes and sales expectations for the next six months as "good," "fair" or "poor." They are also asked to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for responses to each component are used to calculate a seasonally adjusted index, where any number over 50 indicates that more builders view sales conditions as good than poor.

June's HMI remained unchanged from May's index, which was revised downward by a single point to 60. The indexes gauging current sales and sales expectations for the next six months were each unchanged, at 65 and 68, respectively, while the index gauging traffic of prospective buyers rose one point to 44.

"The market for new single-family homes will likely continue on a strong note in the second half of 2002," said NAHB Chief Economist David Seiders. "NAHB's latest forecasts project about 1.3 million single-family starts for the year as a whole, up slightly from the 1.27 million units recorded last year. Thus, the single-family housing market should continue to provide good support to the economy as the budding cyclical recovery moves ahead."

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Have a limited marketing budget but realize the importance of neighborhood marketing? Try doorknob hangers, a low-cost, yet highly effective way to drum up more business. In this episode, John Braun discusses the value of this tactic as well as what you should include on the materials you're hanging.
More Podcasts

ICS Cleaning Specialist Magazine


2014 September

The September issue of ICS features stories on moisture detection, disinfectant services, neighborhood marketing, then we discuss the last level of being phenomenal, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive


Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.pngcrc logo